After reviewing, practicing, and studying the materials included in our Interest Lesson Plan, students will be able to calculate simple interest given the principal, rate, and time of a loan or purchase, as well as define each of the terms. Engage student creativity in interest rate scenario creation to solidify understanding in the application of the concepts. Peer learning opportunities are available when allowing students to check each other’s completed work. Allow students to generalize their understanding by researcing real-world borrowing promotions or offers.
Sample Classroom Procedure / Teacher Resources Snippet:
- Display a large image of an automobile. Ask students to guess the car’s price when purchased new. (Use $42,000 as the correct price.)
- List some of their responses. Ask students why the person had to pay $59,640 for the car.
- Allow for responses and discussion. Lead the discussion to interest. (The person paid an extra $17,640 over 5 years, at a rate of 6%.)
- Distribute Simple Interest content pages. Read and review the information with the students. Use more examples and the additional resources to enhance understanding. Save the final question for lesson closing.
- Distribute Activity page. Read and review the instructions. You may or may not permit calculator use. (Students may use exaggerated rates such as 1,000% for a $5 loan, etc.)
- Once students have completed the activity, they will exchange with a partner and have the work checked for accuracy. It is suggested you allow students to use a calculator for checking the work. Ask the class who has the entry with the largest interest being owed and the smallest.
- Distribute Practice page. Check and review the students’ responses.
- Distribute the Homework page. Review the instructions. If students do not have access to newspapers or catalogs, suggest to them use of the Internet for prices and interest rates. The next day, allow students to share some of their examples and interest rates and costs to borrow money. The students exchange papers to check each other’s completed work.
- In closing, ask: If you could borrow some money, how much would it be and what would you use it for?
- Allow for responses and discussion. Assign an interest rate and time for students to figure their total interest for the money they would borrow.
Common Core State Standards: CCSS.Math.Content.6.RP.A.3.C (partial)
Class Sessions (45 minutes): 1 – 2 class sessions
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